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What Is The Difference Between TAN Number & TIN Number?

Most people get confused with similar sounding words. TAN and TIN are one of those and may create confusion. In this post, we will explain the concept of TAN Number & TIN Number. But before moving to TAN and TIN, lets first understand the concept of Tax Deduction.

Tax Deducted at source (TDS), Tax collected at source (TCS) and Value Added Tax (VAT) are few ways of tax deduction. Tax deducted at source (TDS), as name implies is the deduction of tax at source (where income arises) by authorized deductors. For Example: Employer deducts applicable tax from the salary of the employees and pays the same to the income tax department on behalf of their employees.

Difference Between TAN Number & TIN Number

This is one of the modes of income tax collection in India but applicable only to few types of incomes which includes salary, interest, dividend, interest on securities, winning from lottery, horse races, commission and brokerage, rent, fees for professional and technical services, payments to non-residents etc.

As mentioned above only authorized deductors are allowed to deduct tax from the income of the deductee. For getting the authority to deduct tax, one has to apply for the Tax Deduction Account Number i.e TAN.

Likewise Taxpayer Identification Number (TIN) is an identification number for the dealers who sells goods and services. It is an authority which allows a dealer to charge tax from the customer and pays the same to the tax department on behalf of customers.

Tax Deduction And Collection Account Number (TAN)

TAN stands for Tax Deduction and Collection Account Number. It  is a unique 10 digit alpha numeric number allotted by the Income Tax Department (ITD) of India. Compulsorily required to all the persons who are accountable for tax deducted at source (TDS) or tax collect at source (TCS) on behalf of the income tax department.

TAN number consists of 10 digits, starting from four alphabets followed by five numbers ended with one alphabet. Example of TAN number is :- RGPO 02811 K

The deductor is required to quote TAN number in every correspondence related to TDS or TCS. Failing to apply for TAN or not quoting the same on the specified documents attracts a penalty of Rs 10,000. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.

Online TAN Registration can be done by submitting a duly filled form 49B. 

Check Your TAN Number HERE

Taxpayer Identification Number (TIN)

TIN stands for Taxpayer Identification Number. It is a 11 digit unique identification number used by all the dealers registered under VAT throughout the country for the sale of goods and services. It consists of 11 digits out of which first two characters represents the State code as used by the Union Ministry of Home Affairs and next nine digits differ from state to state. In the remaining 9 digits, there are digits reserved to represent Area and district to which dealer is registered. It is also called as VAT (Value Added Tax) number.

CST (Central Sales Tax) Number is issued by the Commercial Taxes Department under the CST Act. CST registration would be applicable if you intend to make an interstate sale.

All the dealers seeking for new registration under VAT or Central Sales Tax will be allotted new TIN as registration number. However every State Commercial Tax Department have made provisions to issue new TIN to their existing dealers replacing old registration/ CST number.

TAN Number & TIN Number (Tax Deduction & Collection Account Number Vs Taxpayer Identification Number)


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